Recent on-chain data and operations activity show that Ethereum whales are engaging in substantial sell-offs, raising concerns about their long-term confidence in the asset. One notable transaction involved a whale who, after purchasing ETH at $1,890 last year, moved 12,906 ETH ($24.39 million) from Binance to Lido.
Recent on-chain data and operations activity show that Ethereum whales are engaging in substantial sell-offs, raising concerns about their long-term confidence in the asset. One notable transaction involved a whale who, after purchasing ETH at $1,890 last year, moved 12,906 ETH ($24.39 million) from Binance to Lido.
More recently, this same investor withdrew 7,000 ETH from Lido and re-deposited it on Binance, securing over $16 million in profits amid a fluctuating market.
The accompanying charts reveal a decrease in the number of large transactions along with a fluctuating price, suggesting a possible correlation between whale activities and price movements. Specifically, the total volume of large transactions has seen a notable decline, aligning with periods of price instability.
Whale profit-taking may be influenced by the relative underperformance of Ethereum compared to other leading cryptocurrencies such as XRP and Solana. Although not drastic, Ethereum’s slow pace in the rapidly evolving crypto landscape could be prompting these large holders to reevaluate their positions. It is critical to monitor these movements as they may indicate a change in investor sentiment, which could lead to more significant adjustments in the market.
Furthermore, IntoTheBlock’s on-chain metrics show a significant correlation between the price of Ethereum and the number of large transactions. This relationship highlights how influential these large transaction volumes are on Ethereum price dynamics. The recent drop in trading volume, especially in April, reflects a drop in the price of Ethereum, suggesting that selling pressure from whales is having an impact.
While a significant sell-off does not spell doom for Ethereum, it does raise some concerns about the sustainability of its current moves.
